Extell Development Advances 570 Fifth Avenue Office Tower Project With Ingka Group Investment

Key Points:

💰 The Diamond District in Midtown Manhattan is undergoing a significant transformation with the development of a new office tower.

🏦 The project will feature a unique retail experience anchored by a flagship IKEA store.

📆 Major financial support from prominent investors highlights confidence in the project's success.

This exciting development in the heart of Midtown is set to reshape the landscape of the Diamond District. The ongoing excavation at 570 Fifth Avenue is paving the way for an impressive 29-story office structure that will stand at 567 feet tall. Designed by Kohn Pedersen Fox and brought to life by Extell Development, this ambitious project aims to deliver more than just conventional office space.

Strategic Location and Expansive Opportunities

The site is strategically positioned between West 46th and 47th Streets, putting it in a prime location within the bustling corridor. With close proximity to the B, D, F, and M subway lines at Rockefeller Center, the building is set to provide excellent access for its future occupants. The expansion of the site includes the recent acquisition of 576 Fifth Avenue, which will enhance the project's scale and offer larger floor plans for prospective tenants.

What's in Store at 570 Fifth

This development is set to redefine modern office environments by integrating a wide range of amenities within its walls. With over 637,000 square feet dedicated to Class A office space, tenants can expect contemporary designs complemented by floor-to-ceiling windows that maximize natural light. In addition to premium office offerings, the complex will feature a multi-level retail space, prominently showcasing a large IKEA store that spans 80,000 square feet across two underground levels. Thoughtfully designed amenities including fitness facilities, a swimming pool, and wellness-oriented spaces—all to be housed underground—contribute to a holistic lifestyle experience for the occupants.

Current Status of Construction

As of mid-2025, excavation work is making substantial progress, with pilings actively being set in place on the property. Teams are currently working across both parcels, 570 and 576 Fifth Avenue, preparing for the installation of concrete slabs that will form the foundation of this soaring structure. As temporary retaining walls shore up the area, construction workers are diligently progressing through multiple tiers of foundational work, laying the groundwork for what will soon become a striking architectural presence.

Financial Backing and Investor Confidence

Investment interest in this project has been robust, highlighted by the Ingka Group's commitment to acquiring a significant stake in the development, providing between $300 million to $500 million specifically for the retail elements. Additionally, IGIS Asset Management from South Korea has contributed new debt to the financing of the project, reinforcing Extell's refinancing strategy worth $340 million. This influx of international capital indicates strong market confidence in the resurgence of Fifth Avenue as a desirable destination for retail and office spaces.

Looking Ahead: What's Next for 570 Fifth?

The project's timeline indicates that the pinnacle of 570 Fifth Avenue is set to be reached by 2026, with an ambitious goal for completion targeted for the last quarter of 2028. As this venture moves forward, it is anticipated to not only enhance the skyline but also to create a revitalized hub that embraces modern working and living.